Actually, if they are fully insured... AND if they are able to get the money and a new place quickly, it could turn out quite well for them financially.
Case in point: Andover Fabrics' warehouse was flooded a year or so ago, and since they were fully insured, it essentially was an opportunity for them to have gotten rid of all their old, slow sellers and receive full value for them. Which, for a business, is kinda nice... because every business has slow sellers. That's why you find clearance racks!
Of course, it was a few months before Andover was up and running again, during which time they did not have money coming in from sales, because the warehouse was empty and in the process of being cleaned. Floods are very dirty things.
I'm not sure which is worse... being in an area that gets hit by floods/hurricanes, or in a dry area that's prone to fires. I would think the fires are more scary, but I've never had to live through either.
Prayers for all involved -